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Conversion Rate Optimization

How do Conversion Rate Analysis of Competitor’s Conversions on Amazon

  1. Importance of Ranking on Amazon
  2. Judging Conversion
  3. Conversion Rate Analysis
  4. Utilizing the Product Opportunity Explorer
  5. Using the Tool for Conversion Rate Analysis
  6. Example of Using the Tool
  7. Calculation of Conversion Rate
  8. Application of the Conversion Rate
  9. Wrapping Up

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Welcome to this comprehensive guide on understanding and calculating the average Conversion Rate Analysis for your Amazon listing, and how it stacks up against your competitors. In the complex world of online commerce, it is essential to grasp these metrics to optimize your product’s performance and maximize its profitability.

Our goal is to provide you with a step-by-step guide on how to calculate the average conversion rate for your product, or even your competitor’s product on Amazon. We will walk you through the practical steps and offer insights into how you can use this critical information to improve the visibility and sales performance of your product.

In this blog you will learn:

  • Importance of Ranking on Amazon
  • how to do Conversion Rate Analysis

Importance of Ranking on Amazon

Ranking on Amazon is not just about having a great product or a persuasive product description. It’s also about understanding the different metrics Amazon uses to rank products and how you can optimize these to your advantage.

The three critical metrics that Amazon uses for ranking products are:

1. Relevancy: This is a measure of how closely your product matches the user’s search query. The more relevant your product is to a search query, the higher it will rank.

2. Click-Through Rate (CTR): This is the percentage of people who click on your product listing after seeing it in the search results. A higher CTR indicates that your product listing is attractive and relevant to users.

3. Conversion Rate Analysis: This is the percentage of people who make a purchase after clicking on your product listing. A higher conversion rate indicates that users find your product appealing and that your product listing is effective at persuading users to make a purchase.

Of these three, CTR and Conversion Rate Analysis are the most critical. If users are clicking on your product listing but not making a purchase, it indicates a gap in your product listing that needs to be addressed.

Judging Conversion

Understanding how to determine the conversion rate of your listing is critical for optimizing your product’s performance on Amazon. The conversion rate is calculated as the number of orders divided by the number of clicks your listing receives. However, this data is only available for your own listings and not for your competitors.

To get a sense of how your conversion rate compares to your competitors, you can look at their product ranking. Products that rank higher than yours likely have a better conversion rate. While Amazon doesn’t provide exact conversion rates for other products, we can use specific tools to get a rough idea of these numbers.

Conversion Rate Analysis

To quantify the conversion rate of your competitor, you can use the Product Opportunity Explorer tool provided by Amazon Seller Central. This tool gives you access to valuable data such as click count, which is the number of times users have clicked on a product listing.

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By comparing the click count of your product listing with that of your competitors, you can get a sense of how your conversion rate stacks up. A higher click count for your competitors indicates that their product listing is more attractive to users and is likely driving a higher conversion rate.

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Utilizing the Product Opportunity Explorer

Navigating the Product Opportunity Explorer tool in Amazon Seller Central is straightforward. You can find this tool under the “Growth” tab in your Seller Central account. If you don’t see this option in your account, you can request access by sending an email to opportunity-explorer-request@amazon.com.

The Product Opportunity Explorer provides a wealth of information about products in your niche, including click count, launch date, and brand name. Using this data, you can estimate the average conversion rate in your niche and compare it with your own. In doing so, you can identify areas of improvement in your product listing and make informed decisions to enhance your product’s performance on Amazon.

In conclusion, understanding and calculating the average conversion rate is crucial for any Amazon seller looking to optimize their product performance and maximize profitability. By using Amazon Seller Central’s Product Opportunity Explorer tool, you can gain valuable insights into your product’s performance and identify opportunities for improvement.

Using the Tool for Conversion Rate Analysis

To calculate the average conversion rate in a specific niche or the conversion rate of your competitors, the Product Opportunity Explorer tool in Amazon Seller Central is an invaluable resource. It provides data that can help you understand how your product listing is performing compared to others in the same niche.

The tool provides data such as click count, which is the number of times users have clicked on a product listing. By comparing your click count with that of your competitors, you can get an idea of how your product is performing. A higher click count for your competitors suggests that their product listing is more attractive to users, hence a higher conversion rate.

This analysis can also be extended to calculate the average conversion rate in your niche. By analyzing the click count and conversion rate of multiple products in your niche, you can get an idea of the average conversion rate. This information is crucial in understanding how your product stacks up against the competition and where improvements can be made.

Example of Using the Tool

To illustrate how the Product Opportunity Explorer tool can be used to analyze conversion rates, let’s consider the example of a “garlic press.”

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First, we’ll search for “garlic press” in the Product Opportunity Explorer tool. The tool will display a list of products in this niche, along with their click count. By comparing the click count of these products, we can get an idea of their popularity and, by extension, their conversion rates.

Conversion Rate Analysis

It’s important to consider that a higher click count doesn’t always translate to a higher conversion rate. Other factors such as product quality, price, and customer reviews also play a crucial role in the conversion rate.

Calculation of Conversion Rate

The calculation of the conversion rate involves analyzing the number of orders and the number of clicks a product listing receives.

To aid in this process, we can use tools like the Keeper Chrome extension and the Jungle Scout Sales Estimator. The Keeper Chrome extension provides data on a product’s sales rank over the last 90 days, which can be used to estimate the number of orders a product has received in this period. On the other hand, the Jungle Scout Sales Estimator can provide an estimate of the number of sales per month based on a product’s sales rank.

By combining these data, we can calculate the conversion rate as the number of orders divided by the number of clicks.

Application of the Conversion Rate

Once the conversion rate is calculated, it can be used to estimate the cost per order and compare it with the Pay-Per-Click (PPC) suggested bid. This comparison can provide insights into the profitability of a product and the competitiveness of the product niche.

By understanding the average conversion rate in your niche, you can also estimate the competitiveness of your product. If your conversion rate is significantly lower than the average, it suggests that your product listing may need improvement. On the other hand, if your conversion rate is higher than the average, it indicates that your product is performing well compared to the competition.

Wrapping Up

Understanding and calculating the average conversion rate is crucial for any Amazon seller looking to optimize their product performance and maximize profitability. By using the Product Opportunity Explorer tool in Amazon Seller Central and other tools like the Keeper Chrome extension and the Jungle Scout Sales Estimator, you can gain valuable insights into your product’s performance and identify opportunities for improvement.

If you found this guide helpful, don’t forget to like the video and subscribe to the channel for more insightful content on Amazon selling. If you have any queries or comments, feel free to leave them in the comments section, and we will do our best to address them.

Thank you for taking the time to read this guide. We hope you found it informative and helpful in understanding how to calculate and apply the average conversion rate for your Amazon product listing. As always, we strive to provide you with the most accurate and up-to-date information to help you succeed in your Amazon selling journey. Until next time, keep learning, keep growing, and keep selling!

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